AUKUS is a new dawn for MRO Supply Chains in Australia

March 14, 2023

Exploring the MRO Supply Chain for Defence Submarines: A Crucial Component for Operational Efficiency

The Maintenance, Repair, and Operations (MRO) supply chain encompasses the intricate processes that govern the procurement, inventory management, and delivery of goods and services for maintaining equipment, facilities, and other assets in optimal working condition. Defence submarines, as sophisticated underwater vessels, demand a well-orchestrated MRO supply chain to guarantee their longevity and effectiveness in executing critical missions. With further detail announced on the AUKUS partnership to introduce a nuclear submarine capability for Australia, let's examine the nuances of the MRO supply chain for defence submarines, its significance, challenges, and potential solutions for enhanced management.

The Indispensable Role of the MRO Supply Chain in Defence Submarines

Operating in highly demanding environments and performing tasks such as surveillance, intelligence gathering, and covert operations, defence submarines rely on a robust MRO supply chain for several reasons:

  1. Operational Readiness: An efficient MRO supply chain ensures submarines remain in prime condition, poised for deployment at a moment's notice. Regular maintenance and prompt repairs are crucial to maintaining mission-readiness.
  2. Cost Management: Streamlined MRO processes minimise the total cost of ownership (TCO) for defence submarines. By optimising MRO processes and sourcing appropriate components at opportune moments, defence organisations can reduce costs and bolster budget management.
  3. Safety: The MRO supply chain plays a pivotal role in safeguarding crew members aboard submarines. Routine maintenance and repairs can avert accidents and equipment malfunctions, thus protecting the lives of those onboard.

Navigating the Challenges in the MRO Supply Chain for Defence Submarines

Managing the MRO supply chain for defence submarines is a complex undertaking, laden with various challenges that warrant attention:

  1. Obsolescence: The rapid evolution of technology frequently renders submarine components obsolete, complicating the sourcing and management of replacement parts.
  2. Regulatory Compliance: Stringent regulations and standards govern defence submarines. Ensuring MRO processes and components adhere to these requirements is a demanding challenge that necessitates continuous vigilance.
  3. Global Sourcing: Procuring submarine components from global suppliers can introduce logistical challenges and delays, impacting the timely execution of MRO tasks.

Strategies for Enhanced MRO Supply Chain Management

To surmount these challenges and optimise the MRO supply chain for defence submarines, the following strategies can be adopted:

  1. Data Analytics and Predictive Maintenance: Harnessing data analytics enables defence organisations to better anticipate maintenance requirements and refine the MRO supply chain. Predictive maintenance facilitates the identification of potential issues before they escalate, allowing for prompt repairs and minimising downtime.
  2. Collaborative Planning: Cooperation among suppliers, manufacturers, and other supply chain stakeholders can address issues related to obsolescence, regulatory compliance, and global sourcing.
  3. Standardisation and Modularisation: Embracing standardised processes and modular designs can simplify MRO processes and reduce the number of unique components required for repairs, enhancing sourcing and management efficiency.
  4. Digital Transformation: Adopting digital technologies such as blockchain, the Internet of Things (IoT), and artificial intelligence (AI) can augment the visibility, efficiency, and security of the MRO supply chain.

The MRO supply chain is an essential component in guaranteeing the operational efficiency and readiness of defence submarines. By addressing inherent challenges and adopting effective strategies for superior management, defence organisations can sustain a high level of preparedness while ensuring the safety and cost-effectiveness of these vital underwater vessels.

AUKUS - a new dawn for MRO Supply Chains in Australia

The Virginia-class submarines – one of the two proposed in the AUKUS agreement – form the backbone of the United States Navy's attack submarine fleet, gradually replacing the older Los Angeles-class.

Whilst critical to maintain peace in the Asia-Pacific region, these submarines will be complex and costly to maintain. With a F-35 combat aircraft having in excess of 300,000 parts from 1,700 suppliers – it is not stretch to then assume a submarine of the size, scale and capabilities of the Virginia-class has well over 950,000 different parts and components, including complex machinery, electrical and electronic systems, pumps, valves, sensors, and many other types of equipment. With the US industrial supply chain behind the Virginia-class reportedly under strain, with parts wearing out sooner than expected and cannibilisation occuring across platforms, it will be crucial for Australian Defence planners and industry to invest in their MRO planning capability.

Planning service parts supply chains is a complex task that involves dealing with various challenges such as high-cost parts, long lead times, multiple sources for the same part, sporadic and low-volume part usage patterns, and the contrasting requirements and preferences of OEMs.

Contact us today, trace. your supply chain consulting partner.

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